A turning point is likely to begin for savers on June 6th: the European Central Bank (ECB) has announced the first interest rate cut in eight years at its meeting in the first week of June. Savers should quickly secure the higher interest rates.

This is likely to happen: On June 6th, the ECB will decide whether to lower its key interest rate. This will likely be the first time she has done so in eight years. Several ECB Governing Council members have already indicated that they are open to this.

That’s what’s behind it: Inflation in the euro area is falling, but the economy is weakening. Low key interest rates make investments more affordable for companies, which stimulates the economy. But they can also fuel inflation, which is why the ECB has recently waited to cut interest rates. Now the conditions for a reduction seem to be in place.

This is what it means for savers: Low key interest rates reduce the returns on fixed-interest savings options because the banks base their interest rates on the key interest rate. After an interest rate cut, overnight money and fixed-term deposits produce worse returns than before. If you want to invest money for the medium to long term, you should do so before interest rates fall, if possible.

If you want to invest in fixed-term deposits now, you can currently find very good offers on comparison platforms such as “Weltsparen” and, with this link, you will receive a bonus of up to 100 euros on the amount invested, depending on the investment amount.

The bonuses in detail:

This is likely to happen: “I think there will be further interest rate cuts in the future,” said Lithuania’s central bank chief Gediminas Simkus, who also sits on the ECB’s Governing Council. He expects three more rate cuts this year. The majority of other experts also expect two or three interest rate hikes if inflation remains under control.

That’s what’s behind it: A European economy that is weak compared to other countries is putting the ECB under pressure. As long as inflation doesn’t pick up again – and it doesn’t look like it will at the moment – the chances are good that the central bank will follow up an interest rate cut in June with further rounds.

This is what it means for savers: Anyone who misses out on the current interest rates on savings investments may have to wait a long time until they get similarly good offers again. That’s why it’s currently worth securing good offers for a medium to long-term period, especially when it comes to fixed-term deposits.

There are hardly any disadvantages to the decision: no expert is currently expecting interest rates to rise. Fixed-term deposits are unlikely to produce better returns in a few months than they do now. So it’s not worth waiting. If you want to invest money, it’s best to do so as quickly as possible, before the banks factor the expected interest rate cut into their offers.